Nortel Networks announced workforce reductions of approximately 3,250 employees as part of its previously announced plan to reduce research and development expenses, selling, general and administrative expenses, and cost of sales. About 1,400 of the job cuts will be in the U.S,. 950 will be in Canada, 650 in Europe, Middle East and Africa (EMEA). And 250 elsewhere.
The company now estimates charges against income of approximately US$450 million comprised of approximately US$220 million with respect to the workforce reductions and approximately US$230 million with respect to the real estate actions. The workforce reductions are expected to yield cost savings of approximately US$500 million in 2005. http://www.nortelnetworls.com
- On August 19, Nortel Networks first announced plans for a 10% workforce reduction resulting in the loss of 3,500 jobs by year end.